RATING COMMITTEES.

(1) Where the provisions of the Sixth Schedule are under Sec. 57 deemed to be incorporated in the licence of any licensee, the following provisions shall have effect in relation to the licensee, namely: (a) The Board or where no Board is constituted under this Act, the State Government- (i) May, if satisfied, that the licensee has failed to comply with any of the provisions of the Sixth Schedule; and (ii) Shall, when so requested by the licensee In writing, constitute a rating committee to examine the licensee's charges for the supply of electricity and to make recommendations in that behalf 'Lo the State Government: Provided that where it is proposed to constitute a rating committee under this section on account of the failure of the licensee to comply with any provisions of the Sixth Schedule, such committee shall not be constituted unless the licensee has been given a notice in writing of thirty clear days (which period, if the circumstances so warrant may be extended from time to time) to show cause against the action proposed to be taken: Provided further that no such rating committee shall be constituted if the alleged failure of the licensee to comply with any provisions of the Sixth Schedule raises any dispute or difference as to the interpretation of the said provisions or any matter arising there from and such difference or dispute has been referred by the licensee to the arbitration of the Authority under Para. XVI of that Schedule before the notice referred to in the preceding proviso was given or is so referred within the period of the said notice: Provided further that no rating committee shall be constituted in respect of a licensee within three years from the date on which such a committee has reported in respect of that licensee, unless the State Government declares that in its opinion circumstances have arisen rendering the orders passed on the recommendations of the previous rating committee unfair to the licensee or any of his consumers,- (b) A rating committee under Cl. (a) shall, - (i) Where such committee is to be constituted under sub clause (i) of that clause, be constituted not later than three months after the expiry of the notice referred to in the first proviso to that clause; (ii) Where such committee is to be constituted at the request of the licensee be constituted within three months of the date of such request; (c) A rating committee shall, after giving the licensee a reasonable opportunity of being heard and after taking into consideration the efficiency of operation and management and the potentialities of his undertaking report to the State Government within three months from the date Of its constitution, making recommendations with reasons may therefore, regarding the charges for electricity which the license make to any class or classes of consumers so, however, that the recommendations are not likely to prevent the licensee from earning clear profit sufficient when taken with the sums available in the Tariffs and Dividends Control Reserve to afford him a reasonable return as defined in the Sixth Schedule during his next succeeding three years of account: Provided that the State Government may, if it so deems necessary, extend the said period of three months by a further period not exceeding three months within which the report of the rating committee may be submitted to it; (d) Within one month after the receipt of the report under Cl. (c), the State Government shall cause the report to be published in the Official Gazette, and may at the same time make an order in accordance therewith fixing the licensee's charges for the supply of electricity with effect from such date, not earlier than two months or later than three months, after the date of publication of the report as may be specified in the order and the licensee shall forthwith give effect to such order; (e) The charges for the supply of electricity fixed under Cl. (d) shall be in operation for such period not exceeding three years as the State Government may specify in the order: Provided that nothing in this clause shall be deemed to prevent a licensee from reducing at any time any charges so fixed. (2) Where a Board is constituted under this Act, the rating committee shall consist of three members as follows: (i) One member shall be nominated by the State Government who Shall all be a person who is or has been judicial officer not below the rank of a District Judge; (ii) One member shall be a member of the Board having experience of accounting and financial matters; and (iii) One member shall be a representative co-opted jointly by the two members referred to in Cls. (i) and (ii) from an association of licensees of which the licensee concerned is or is eligible to be a member and if there is no such association, from such